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ResourcesseparatorProperty Management for Short Term Rentals

Texas Airbnb Management Company Directory

Key takeaways

Texas Airbnb Management Company Directory

Texas is a popular location for investing in short-term rentals because of its diverse range of attractions, including state parks, tourist attractions, and country music, as well as its year-round demand from tourists because of the state's varied climate. However, individual cities in Texas have local regulations governing short-term rentals that may be restrictive or even prohibitive, especially for non-owner-occupied properties. To take advantage of the favorable conditions in Texas and avoid legal issues, it is advisable for investors to hire one of the top Texas Airbnb management companies in their city.

Top Texas Airbnb Management Companies

The best Airbnb management companies in Texas include:

  1. Awning: Best Overall Texas Airbnb Manager
  2. RedAwning: Best Half-Service Airbnb Management Solution
  3. Avantstay: Best Luxury Short-term Rental Management Company
  4. Leavetown: Best Employee-Owned Airbnb Management Company
  5. Kasa: Best for Multifamily Properties
  6. Hill Country Premier Lodging: Best for Flexible Property Management Options

Top Texas Airbnb Management Companies by City

//[inject:city-selector]

How We Researched the Top Texas Airbnb Management Companies

The criteria we used to select and rank the top Airbnb management companies in Texas include:

  • Services: We looked at whether a company is a half-service or full-service provider and whether it offers all expected services within each category.
  • Pricing: We considered whether an Airbnb property manager has a clear pricing structure covering all services. We also looked at what additional fees hosts will need to pay.
  • Value for money: We evaluated whether the provided services and the expected fee offer the best value for money in Texas.
  • Business model: We investigated whether a company uses the latest real estate technology while retaining human touch, which is crucial in property management.
  • Reviews: We took into consideration whether companies have a strong online presence and whether reviews are positive or negative.
  • Number of listings in Texas: We searched for the Airbnb management companies with the most active listings in the Texas market.

To maximize your vacation rental investments in Texas, connect with an Awning property manager now.

How to Choose a Texas Airbnb Management Company

Choosing the best Airbnb management company is as important as buying a high-potential property for the success of your rental business. This is crucial in a market like Texas where many cities restrict non-owned short-term rentals and where competition from other savvy investors is tough.

When making this decision, focus on the same criteria that we used in our ranking of the top Texas Airbnb management companies:

  • Services: Do you want to be involved in the management of your property (half-service is better) or do you aim for completely passive income (full-service is a must)? What services do you expect the Airbnb manager to cover and what would you like to do yourself? Is your property furnished and ready to welcome guests or do you need help with this?
  • Pricing: How much are you willing to pay for a fully passive investment experience or some extra help in managing your vacation rental?
  • Value for money: Compare the list of services provided by a few different property management companies and the fees they charge including the monthly fee and additional charges.
  • Business model: Would you rather work with a nationwide or local property manager? Do you expect national accountability or local, personal touch? Does the company seem honest and transparent?
  • Reviews: Check out online reviews by both property owners and guests. If possible, talk to a few local investors working with each property manager you consider.
  • Number of listings in Texas: Go for a company that has an established presence in the Texas market but is not overloaded/understaffed. You want to hire an experienced professional with enough local capacity.

When interviewing a few top choices for a Texas short-term rental property management company, ask the following questions:

  • Are you a local property manager or a nationwide company?
  • For how many years have you been managing short-term rentals?
  • How many properties do you manage at the moment?
  • How big is your local team?
  • Do you have an in-house local management team or do you work with vendors?
  • By how much are you able to increase revenue in the local market?
  • Do you help get properties ready? Do you help with interior design, furnishing, short-term rental licenses and permits, and taxes?
  • Do you collect money from guests and remit to owners or do booking fees go to the property owner directly?
  • Do you provide cleaning, laundry, and restocking?
  • Do you conduct property inspections and maintenance work?
  • Do you manage swimming pools and hot tubs?
  • What is your Airbnb property management fee? What does this cover? Are there any additional fees and costs? Is there an onboarding and/or early-termination fee?
  • Can I review a copy of the property management agreement?
  • How can I cancel your services?
  • Do I get to keep my property reviews if I opt out?

Knowing the answers to these questions is key for selecting the best Airbnb property management company in Texas for your specific needs.

How Airbnb Management Works

There are two broad types of Airbnb property management companies: full-service and half-service.

Full-service property managers are those that take care of all the aspects of owning and running a short-term rental business. They help:

  • Get properties ready (interior design, furnishing, linen, insurance, getting licenses and permits, and setting up transient occupancy taxes)
  • Create, optimize, distribute, and market listings
  • Manage all day-to-day tasks (cleaning, restocking, and laundry)
  • Take care of guests (communication, check-ins and check-outs, and support)
  • Manage finances (adjust daily rates, optimize occupancy, boost revenue, report finances, and collect and remit taxes)
  • Take care of properties (inspections, maintenance, and repairs)

The best full-service Airbnb management companies help investors achieve passive income while boosting performance.

Half-service Airbnb property managers usually focus on listings, marketing, revenue management, guest communication and support, and taxes. Some of them offer to connect property owners with vetted local vendors for the services they do not cover.

Vacation rental property management companies can be national (covering most US markets) or local (focusing on a specific city). Both come with their own advantages and disadvantages.

Property management fees range widely in the US market: between 10% and 50% of revenue, with 20-25% of revenue being the average for full-service providers. Some companies charge different rates for different markets and different property types. Property managers frequently charge extra for services outside the core package, like interior design, furnishing, insurance, linen, etc.

The top vacation rental management companies have flexible terms and do not require long-term commitment on behalf of property owners. However, some expect quarterly or annual commitments.

Some Airbnb property managers focus on specific property types, like luxury rentals, group travel rentals, apartments, etc., while others work with most residential properties. Different companies have different eligibility requirements; for example, half-service property managers work with furnished short-term rentals, while some full-service companies prefer to be directly involved in design and furnishing.

One thing property owners should keep in mind is that most Airbnb management companies list rentals under their brand name, so hosts lose the reviews and rankings once they leave. A noticeable exception is Awning, which allows properties to keep reviews.

How to Start an Airbnb in Texas 

In order to start an Airbnb business in Texas, investors need to:

  1. Choose the best Texas city for short-term rentals (where Airbnb is legal, and return is high)
  2. Find a high-potential property (Awning can help)
  3. Make sure the zoning district allows non-owner short-term rentals
  4. Hire an agent to help them purchase the property
  5. Renovate the property (if needed)
  6. Furnish the rental (Awning can help)
  7. Select a business structure
  8. File tax and employer identification documents
  9. Register with the Texas Comptroller’s Office
  10. Get local short-term rental licenses and permits by city (many Texas cities require local licenses or permits)
  11. Decide if you want to hire an Airbnb management company (Awning can help with all the steps) or manage your property on your own
  12. List your property and start renting out
  13. Provide ongoing services to guests and property maintenance and upkeep

Whether you decide to manage your Texas vacation rental on your own or to hire a property manager will determine if you get to enjoy passive rental income or not.

Texas Airbnb Laws and Regulations

Texas short-term rental laws define a short-term rental, also referred to as a vacation rental, as the renting out of a residential dwelling unit or an accessory building temporarily for fewer than 30 consecutive days. No short-term rental licenses or permits are required at the state level, and there are no statewide regulations or restrictions. 

Texas Airbnb hosts are expected to pay federal rental income tax, state hotel occupancy tax of 6%, and local lodging tax which varies by city. Many vacation rental online marketplaces like Airbnb and Vrbo collect and remit taxes on behalf of hosts.

Individual Texas cities have enacted their own short-term rental laws. Here are the Texas cities with the most restrictive Airbnb laws and regulations:

  • Houston: Unhosted rentals of less than 30 days, also known as non-owned, occupied short-term rentals, are not allowed in Class A Dwellings. In hosted rentals, the host has to be available on site throughout the stay of guests, and guests have to have access to all parts of the rental property.
  • Austin: Type 2 short-term rentals, defined as non-owner occupied single-family homes or duplexes, cannot be on a lot within 1,000 feet from a lot where another Type 2 short-term rental is located. Type 3 short-term rentals, defined as non-owner occupied multifamily, face geographical caps. Running a vacation rental business requires an operating license, renewable annually.
  • San Antonio: Type 2 vacation rentals, defined as vacation rentals where neither the owner nor the operator occupies the property, are limited to only 12.5% of the properties on a block face. In multifamily buildings, non-owner occupied short term rentals are limited to no more than 12.5% of the total number of units. Hosts need to obtain a short term rental permit from the Development Services Department. Licenses are valid for three years.
  • Fort Worth: Short term rentals are allowed only in mixed-use and industrial zones and are prohibited in residential zones.
  • Corpus Christi: Type 2 short term rentals, defined as non-owner/operator occupied short term rentals, are limited to no more than 15% of the block face and are awarded on a first come, first served basis. They are prohibited on Padre/Mustang Island. A short term rental registration permit is needed, and it is valid for one year.
  • Rollingwood: Short term rentals are entirely prohibited.

Takeaway

Investing in an Airbnb property in Texas is one of the most profitable ways to make money from real estate in the US market. However, vacation rental property owners face strict regulations and even prohibitions in some Texas cities as well as strong competition from other investors. Thus, it’s crucial to choose the best short term rental property management option in order to succeed. A good way to do that is to work with a top Texas Airbnb management company.

Awning is the best Texas Airbnb manager across all cities as it provides full-service property management at an industry-low fee of 15% of revenue. Evolve is worth considering for local investors who’d like to be personally involved in the management of their Airbnb business. Kasa can be a viable option for investors owning multifamily properties.

Awning is the top Texas property management company offering end-to-end services for Airbnb investors. Our services include 24/7 guest communication, dynamic pricing, calendar management, and more, and are available in all 50 states. Plus, our fees start at just 15% of your revenue, with no extra charges or fees.

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